US healthcare conducts first large-scale drug price negotiations: 15 drugs average 44% price cut

The U.S. Centers for Medicare & Medicaid Services (CMS) have completed the first large-scale drug price negotiation in history, reducing prices by an average of 44% for 15 drugs used to treat serious chronic diseases and cancer, and are expected to save the Medicare system $1.2 billion. This is a core initiative of the Trump administration's "Affordable Action" plan, aimed at lowering healthcare and food costs.

On November 26, according to media reports, CMS announced on Tuesday that GLP-1 weight-loss drugs Ozempic and Wegovy from Novo Nordisk saw a 71% price cut in this round of negotiations, making it the most notable outcome of the round. The 15 drugs involved in the negotiations are those with the highest spending in Medicare Part D, used to treat chronic diseases such as cancer, diabetes, and asthma. Secretary of Health and Human Services Robert F. Kennedy Jr. stated that President Trump instructed them to spare no effort in reducing healthcare costs. As the midterm elections approach, affordability issues have become a focus for low-income families.

For the pharmaceutical industry, this marks a significant expansion of government pricing power. According to media reports, Novo Nordisk expressed "serious concerns" about the government-led pricing model and continued to oppose the negotiation framework.

Significant Reduction in Prices of Core Drugs

This round of Medicare drug price negotiations yielded notable results. In addition to the 71% price cut for GLP-1 drugs, multiple core drugs saw substantial reductions. Pfizer's breast cancer drug Ibrance dropped 50%, prostate cancer drug Xtandi fell 48%, and GlaxoSmithKline's Trelegy Ellipta decreased by 73%.

According to CMS statistics, combined with the 10 drugs already negotiated last year (to take effect January 1, 2026), the number of drugs covered by price negotiation will expand to 25, further broadening the policy's impact.

Secretary of Health and Human Services Robert F. Kennedy Jr. emphasized:

"Following President Trump's instructions, we are working all-out to lower healthcare costs for Americans. Under the vision of 'Make America Healthy Again,' we will use every available tool to ensure seniors have access to affordable healthcare services."

Under the current government-led pricing mechanism, pharmaceutical companies are actively adjusting market strategies in response to changing policy environments. For instance, Novo Nordisk, while publicly expressing concerns about the existing pricing mechanism, has strategically adjusted prices of its GLP-1 drugs to maintain market competitiveness. This move fully reflects the industry's real choices in seeking a balance between policy pressure and market competition.

Strategic Deployment Ahead of the Midterm Elections

CMS's latest statement marks a substantial acceleration in the Trump administration's efforts to reduce prescription drug prices, improve Medicare affordability, and control overall healthcare expenditures. Coupled with its simultaneous initiatives in stabilizing food prices and other livelihood sectors, the government is systemically advancing multi-front cost controls through the "Affordable Action" plan.

Currently, with low-income families continuing to face budgetary pressures, healthcare and living costs have become focal issues in the midterm election cycle. The timing of the first large-scale public disclosure of Medicare drug price negotiation results is clearly politically motivated, demonstrating the administration’s ability to execute policy and aiming to convert the results into election momentum, strengthening its image in economic and livelihood management.

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